According to SunTrust Mortgage Bulletin COR 07-063, effective on Monday, June 11, 2007, SunTrust Mortgage converted its Agency 3/1, 5/1 and 7/1 Treasury Arms (Fully Amortizing & Interest Only) to Agency 3/1, 5/1 and 7/1 LIBOR Arms (Fully Amortizing & Interest Only). Thus, effective with all new Agency ARM loan applications, registrations and/or lock-ins taken on or after Monday, June 11, 2007, the only available index will be the one year London InterBank Offered Rate (LIBOR). As SunTrust will not grant any lock-in extensions and re-locks, all Agency ARMs with a Treasury index must be locked by close of business, Friday, June 8, 2007 and closed no later than the lock-in expiration date.

Note that as a result of the conversion to a LIBOR index, the cap structure for the 5/1 ARM will be changing from 2/2/5 to 5/2/5. The cap structure for the 3/1 ARM will remain at 2/2/6 and the cap structure for the 7/1 ARMs will remain at 5/2/5. In addition, the base margin for all Agency ARMs will also be changing from 2.75% to 2.25% for all occupancy types.

As a result of this announcement, DocMagic, Inc. has removed SunTrust's Treasury loan programs from its available program list and will update the SunTrust Investor Matrix posted on the Investor Updates page.